CHENNAI: About 1,000 cinema theatres, including multiplexes, in Tamil Nadu remained closed today following the indefinite shut down announced by the Film Chamber of Commerce to protest against 18 per cent GST levy.
Chamber President Abirami Ramanathan told reporters here that the agitation was not against the Central or Tamil Nadu governments, but to demand for withdrawal of the local taxes.
Mr Ramanathan, who had met Chief Minister Edappadi K Palaniswami on July one and submitted a memorandum to him in this regard, today met Finance Minister D Jayakumar and urged him to take steps to abolish the municipal tax on cinema theatres as it poses a heavy burden on them in view of the GST roll out.
Responding to this, Mr Jayakumar said he would hold discussions with the Chief Minister and take a decision on the issue.
Post GST, the State Government’s plan to collect municipal taxes separately from cinema halls.
According to the GST roll out, theatres which sell tickets below Rs 100 should pay 18 per cent tax and theatres, especially multiplexes which sell tickets above Rs 100, should pay 28 per cent tax.
If the State entertainment tax is added to this, theatre owners should pay 53 per cent of the ticket rate as tax to the Ggovernment.
” It won’t be feasible for us as it will affect the livelihood of over 10 lakh families associated with the industry”, he added.
Mr Ramanathan said in States like Kerala and Karnataka there was no local tax.
Meanwhile, online booking of tickets has been stopped since July one
Meanwhile, Tamil Film Producers Council has said regional language films be exempted from GST and non-regional movies could be taxed at a lower rate, but they are fine with the high GST for Hollywood and foreign language films. (AGENCIES)
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